benchmarking many aspects of paid search versus natural search results. 90-94% of clicks occur in natural results and 6-10% of clicks occur on paid results. Click through rates of natural results are 39% - 79% versus CTRs of paid search are 1% - 10%
3. Augustine Fou- 3 -
Percent Clicks in Organic vs Paid
75-90% of clicks
13-21% avg CTRs
10-25% of clicks
1-9% avg CTRs
Most users
click on
natural search
results
Natural results
have 10x the
click through
rate of paid ads
Source: go-Digital Blog, July 2012
4. Augustine Fou- 4 -
94% of clicks go to natural search results
6% of clicks go to paid search results
Paid vs Natural Click Distribution
Source: Search Engine Watch, August 2012
5. Augustine Fou- 5 -
Page 1 CTR Google vs Bing
Source: Slingshot via Search Engine Watch August 2011
Google Page 1 CTR Curve Bing Page 1 CTR Curve
#1 – 18.2%
#2 – 10.1%
#3 – 7.2%
#1 – 9.7%
#2 – 5.5%
#3 – 2.7%
6. Augustine Fou- 6 -
Search – Paid vs Organic
http://blog.triphp.com/marketing/organic-vs-ppc-search-engine-marketing.html Feb 2009
• 90% of users click on organic side
• Less than 10% click on paid ads
• Cost per click on SEO is under
$0.10 per click
• CPC on paid side is more than 7x
higher, greater than $0.60 per click
7. Augustine Fou- 7 -
Marketing Spend is Out of Whack
Source: SEMPO
Clicks from organic search (SEO) account for 90% of all
clicks; yet budgets for SEO only account for 10% of the
search spending.
SEO
89.5%
PPC
10.5%
Distribution of Search Clicks
SEO
10.8%
$1.4B
PPC
88.8%
$11.9B
Distribution of Marketing Spend
8. Augustine Fou- 8 -
Natural CTR by Industry
Source: Search Engine Watch, August 2012
Airlines 78% 11% 4%
Broadcast 64% 9% 9%
Financial 64% 12% 5%
Online Games 61% 12% 8%
Auto Manuf 60% 19% 6%
Apparel/Beauty 58% 11% 4%
Cellular 56% 15% 7%
Government 55% 15% 10%
Mass Merch 55% 8% 7%
Corporate 53% 12% 8%
Hardware 51% 17% 8%
Current Events 50% 10% 8%
Food/Cooking 46% 17% 9%
Software 44% 20% 8%
Home/Garden 42% 9% 9%
Consumer Electr 39% 9% 8%
Top 3 organic results
9. Augustine Fou- 9 -
Optimizing Search
Paid/ SEM Organic
$1 - $10 FREE
Shift allocation to get more clicks at lower cost
For long
tail, descriptive
keywords
For brand terms
and expensive
keywords
CPC
1 - 5% 13 - 21%CTR
Source: SlingShot SEO
10. Augustine Fou- 10 -
So What?
“As users get more savvy in their search
and as advertisers get more savvy and
focused on returns, search investment
should shift from paid search to organic
optimization, which also leads to longer
term payoff.”
- Dr. Augustine Fou
11. Augustine Fou- 11 -
Related Articles
Organic Search vs Paid Search
By: Augustine Fou, August 2013
Percent of Organic Search from Mobile
By: Augustine Fou, August 2013
Percent of Paid Search from Mobile
By: Augustine Fou, August 2013
Search Ad Effectiveness
By: Augustine Fou, May 2013
Augustine Fou- 11 -
12. Augustine Fou- 12 -
Dr. Augustine Fou – Chief Digital Strategist
“I advise clients on benchmarking
and then optimizing their digital
marketing activities, with a focus
on search optimization.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou
Slideshares: http://www.slideshare.net/augustinefou
LinkedIn: http://www.linkedin.com/in/augustinefou
14. Augustine Fou- 14 -
Advertisers still overspend
on paid search ads
Source: http://www.torontoseofirm.com/ppc-vs-seo-payoff/ Feb 2010
89% of ad dollars spent on paid
search
89% of clicks come from
SEO/organic search
15. Augustine Fou- 15 -
Focus on longer search terms
Source: Chitika, Jan 2012Source: Chitika, June 2010
• Users are searching longer terms
• Users click more on ads related to
longer terms
16. Augustine Fou- 16 -
Users are very savvy
The more
specific the
search (longer
query
length, in # of
words) the
higher the
click through
rate (CTR) on
first search
result.
Source: Just Search, May 2010